Initiating Coverage | Infrastructure

December 16, 2011

ASHOKA BUILDCON
At the crossroads
Ashoka Buildcon (ABL), traditionally a state player, has transformed into a national player by winning four NHAI projects totaling to a TPC of ~`5,156cr. However, this transition has come at a cost, as it entails premium commitments to NHAI (~`220cr per year, albeit covered by toll collections during the construction period) and huge equity contributions from ABLs side, which we believe would stretch its leverage (consolidated net D/E is expected to rise from 1.4x in FY2011 to 3.0x by FY2013E). We have valued ABL on an SOTP basis by assigning 5.0x EV/EBITDA to its standalone business (`87/share) and valued its BOT projects on NPV basis (`158/share). We initiate coverage with a Buy rating on the stock and a SOTP target price of `245/share and key catalyst being raising equity from capital markets. Integrated business model: ABL boasts of an integrated business model in place with strong in-house execution capabilities, which helps it to have control over time and cost the two key essentials of road development business. In the past, many industry players have witnessed severe strain on the financials and profitability of their projects because of their inability to control these important factors. Even in current times, there are developers who do not have an integrated business model and are dependent on contractors for construction activities, making them vulnerable. Hence, we believe players (read ABL) having an integrated business model are better placed. Road sector; opportunities galore: NHAI has set itself an aggressive target of awarding ~9,371km of road projects in FY2012 against ~5,000km in FY2011. NHAI has done a commendable job by handing out ~4,000km so far in FY2012. Going ahead, NHAI, state and rural projects are expected to garner investments of `6.1trillion over FY2012-16E, which augurs well for road developers. Prefer IRB over ABL in the Road BOT space: We initiate coverage on ABL with a Buy rating and a SOTP target price of `245. Our analysis indicates that ABL would need to infuse equity up to ~`990cr (FY2012-14E) in various SPVs; this would be substantially funded by the PE route, as per management. However, we have not factored the same in our estimates, given the gloomy market conditions; instead, we have penciled in the increase in debt levels. In recent times, markets have been harsh on companies with loose financial discipline and, hence, we are conservative in assigning trading multiples to ABL. Therefore, we prefer IRB over ABL, considering ABLs comparatively smaller size, dependency on capital markets for equity and projects at nascent stage. Key financials (Consolidated)
Y/E March (` cr) Net Sales (incl op. income) % chg Adj. Net Profit % chg FDEPS (`) EBITDA Margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others Abs. (%) Sensex ABL 3m (8.5) (28.1)
#

`189 `245
12 Months

Infrastructure 994 0.4 312/180 2,134 10 15,476 4,652 ABDL.BO ASBL@IN

73.2 23.7 1.6 1.5 1yr (22.0) (34.4) 3yr 55.3 #

Note:

listed in Oct 2010

FY2010 796 53.5 80.4 130.8 12.8 26.9 14.8 21.2 10.7 2.6 2.8 10.4

FY2011 1,302 63.7 100.8 25.5 16.0 19.4 11.8 14.9 9.3 1.3 1.9 9.6

FY2012E 1,627 25.0 110.7 9.8 17.6 21.7 10.7 11.7 8.5 1.2 2.0 9.3

FY2013E 1,831 12.5 130.2 17.6 20.7 23.1 9.1 12.2 7.5 1.0 2.5 10.8

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

Initiating Coverage | Infrastructure

Investment arguments
Integrated business model
We believe the BOT business has three most important aspects, namely: 1) Project planning; 2) C&EPC activities; and 3) Post construction activities (O&M). ABLs long stint in the road BOT business has helped it to gain rich experience strengthening its ability to accurately plan for BOT projects. 1) Project planning (PP): Given the back-ended nature of cash flows from BOT assets, reliable assessment of future traffic growth, cost estimates etc become pertinent. Over the course of more than 15 years in toll-based BOT projects, ABL has developed an in-house traffic study team, which has the dual responsibility of conducting pre-bidding traffic surveys and monitoring toll collections. This process has helped ABLs team in gaining experience by comparing the actual performance with the forecasted traffic numbers. Therefore, we believe this experience strengthens its ability to plan accurately for future BOT projects. C&EPC activities: The companys EPC division, with its experienced team of engineers and skilled workmen and its fleet of construction equipment, constructs and maintains the projects leading to control over time and cost. ABLs in-house RMC and bitumen division manufactures and supplies concrete and bitumen leading to better operating margins. Post construction activities: Once the projects are operational, the main source of revenue, toll collection, is received in cash. There are numerous surveys and papers on this subject, indicating cash pilferage of ~10% in toll collections. To seal this loophole, ABL utilizes its own toll collection audit system, which includes cameras installed at toll booths and own proprietary software. The system enables to monitor toll collection on a real-time basis. Also, having an in-house construction team ensures smooth operations and maintenance (O&M) throughout the projects life.

ABL has its own construction equipment and in-house RMC and bitumen division.

2)

ABL utilizes its own toll collection audit system to minimize the chance of cash pilferages and the in-house construction team ensures smooth O&M throughout the life of the project.

3)

Exhibit 1: ABL and IRB Both have an integrated business model covering major pivotal points of road projects
Life cycle of a road project Revenue stream for ABL Revenue stream for IRB Revenue stream for ITNL Revenue stream for other operators
Source: Company, Angel Research

PP Y Y Y N

LoA n.a. n.a. n.a. n.a.

FC N N Y N

Designing Y Y Y N

Construction Y Y N Y

Operation Y Y Y Y

ABLs integrated structure allows to capture the entire value in the BOT development business, including EPC margins, developer returns and operation and maintenance margins.

This integrated business model ensures the timely completion of projects, reduces its reliance on subcontractors and controls costs. In the past, many industry players have witnessed severe strain on the financials and profitability of their projects because of their inability to control these important factors. Even in current times, there are developers who do not have an integrated business model and are dependent on contractors for construction activities, thus making them vulnerable.

December 16, 2011

Initiating Coverage | Infrastructure

Completed Projects Dewas Bypass Wainganga Bridge Nashirabad RoB Sheri Nallah Bridge AnawaliKasegaon

Date of completion Scheduled Jul-04 May-01 Nov-00 Mar-01 Jul-04 Actual May-04 Mar-01 Jul-00 Nov-00 Mar-04

ABL has been able to timely execute its projects, owing to its integrated business model (as depicted in the table). Further, it results in extended period of toll collection, which in turn helps in increasing overall revenue. It also allows capturing the entire value in the BOT development business, including EPC margins, developer returns and operation and maintenance margins. Hence, we believe players such as ABL, having an integrated business model, are better placed in current competitive times.

Road sector Opportunities galore

NHAI is yet to award 21,117km of the planned 49,254km NH, ~7,000km of which is likely to be awarded in FY2012 itself. The road segment continues to offer plenty of opportunities for road concentrated players such as ABL. Of the 49,254km (refer exhibit below) of the planned NH under the National Highways Development Project (NHDP), the NHAI is still left with ~21,117km (refer exhibit below) that has to be awarded. NHAI has set itself an aggressive target of awarding ~9,371km (originally 7,300km + 2,071km added after the PMs intervention) of road projects in FY2012 against ~5,000km awarded in FY2011. NHAI has done a commendable job by handing out ~4,000km so far in the current fiscal and is looking on track to achieve over ~7,000km of project awarding in FY2012. Going ahead, even state highways provide significant opportunities to players. Also, on the anvil, there are plans to build 18,367km of expressways by 2022 in three phases. Around 1,000km of expressway is expected to be completed over the next five years, representing an opportunity of ~`203bn (average capex per km is ~`20cr). The government has also identified nine mega projects with length ranging from 390km to 700km. Over the next five years, an investment of ~`423bn is expected to flow into mega projects. In all, these initiatives would provide immense opportunity (`6.1trillion over FY2012-16E) to companies in road infrastructure development, such as IRB, ITNL and ABL who have a proven track record and the ability to manage large projects.

Apart from NH, state highways, expressways and mega projects provide a number of opportunities to companies in road infrastructure development.

Exhibit 2: Huge opportunities from NHAI

Total 4/6 Laned (km) GQ NS and EW corridors Port connectivity Other NHs SARDP-NE NHDP phase III IV V VII Total 12,109 14,799 6,500 700 49,254 2,617 655 16,207 6,112 1,744 2,538 41 11,930 82 11 20 2 215 3,380 13,055 3,307 659 21,117 5,846 7,142 380 1,390 388 (km) 5,829 5,831 330 945 Under implementation Balance for award (km) Contracts (No) 17 891 50 425 112 8 80 4 6 2 (km) 420 20 276

Source: NHAI, Angel Research, Note: As on 30th Sept. 2011

December 16, 2011

Initiating Coverage | Infrastructure

Positive developments at NHAIs end

Steps such as annual qualification of players and e-tendering of projects along with plans to implement e-tolling bring forth increased transparency and enhance participation in the sector. NHAI has taken several steps (plans to enact more) to enhance transparency in the working style of the agency. It has introduced annual pre-qualification for bidders, as against the earlier each-project basis, which we believe is not only logical and economical but would also lead to shortening of the time cycle (by 2-3 months) in awarding projects. Further, it has initiated e-tendering of projects and intends to implement e-toll collection going ahead. We believe these changes are taking the sector forward in the right direction and would lead to greater transparency and cost savings.

but intense competition plays the spoil sport for contractors

During the last few quarters, players in the road segment are witnessing enhanced competition due to scarcity of order inflow across sectors (except road), as evident from the huge difference in the bidding amount of players and the all-time high participation of players (refer Exhibit 3).

Exhibit 3: Aggressive bidding was witnessed during the last few months
Project A'bad Vadodara Beawer Pali Pindwara Krishangarh A'bad Kota Jhalawar Barwa Adda Panagarh
Source: NHAI, Angel Research

Length (Km) 102.0 244.0 556.0 88.0 123.0

TPC (` cr) 2,125 2,388 5,387 530 1,665

Winner IRB L&T GMR Keti Const. DSC

Premium/(Grant) L1 (` cr) 310.0 251.0 636.0 3.5 106.0 L2 (` cr) 191.7 225.0 516.0 3.4 67.9

Diff (%) 61.7 11.6 23.3 3.2 56.1

No of pre-qualified bidders 22 19 11 41 20

however some rationality is finally coming to fore

We believe competition in the road segment is here to stay; but considering the tough liquidity environment, better financial discipline on the bidding front from players is also expected. However, recent bid results throw a mixed picture (refer exhibit below), as few bids witnessed sensible bidding. As shown in the table below, the difference between L1 and L2 has narrowed down significantly in some cases. We believe this moderation is due to the tight liquidity situation and projects facing difficulty in achieving financial closure, as banks are getting skeptical in lending to aggressively won projects. However, NHAI is emerging as the winner in this highly competitive environment, with bidders offering a premium much higher than NHAIs expectations. We believe competition is here to stay, considering the general slowdown in the economy and lack of opportunities in other segments. However, considering the tough liquidity environment, better financial discipline on the bidding front from players is also expected.

December 16, 2011

Initiating Coverage | Infrastructure

Exhibit 4: Bidding trend in recently awarded road projects

Project Raipur Bilaspur Mah/KNT-Sangareddy Agra Etawah Bakhtiyarpur Khagaria Cuttack Angul Hospet Chitradurga Etawah Chakeri Rampur Kathgodam
Source: NHAI, Angel Research

Length (Km) 126.0 145.0 125.0 113.0 112.0 120.0 160.0 93.0

TPC (` cr) 1,220 1,273 1,207 1,635 1,124 1,045 1,573 790

Winner IVRCL L&T Ramky Essar/KNR Ashoka Ramky Oriental Era

Premium/(Grant) L1 (` cr) 45.5 80.0 128.1 (537.0) 61.1 63.0 91.9 34.0 L2 (` cr) 43.0 75.1 121.9 (568.0) 51.2 45.0 68.1 5.4

Diff. (%) 5.7 6.6 5.1 5.5 19.3 40.0 34.9 529.6

No of pre-qualified bidders 33 37 33 27 27 37 35 24

Prefer IRB over ABL in the road BOT space

We initiate coverage on ABL with a Buy rating and a SOTP target price of `245: The stock has recently corrected by ~20%; and on a YTD basis, the correction has been ~38%. The decline in the stock price can mainly be attributed to 1) the general weakness in stock markets; 2) negatives surrounding the infrastructure sector; and 3) ABLs deterioration in leverage position and expectations of the trend to continue (with the recent Cuttack Angul project win).

Exhibit 5: Share price movement over the last one month Indicates IRBs outperformance
105.0

Exhibit 6: Decline in ABLs share price post winning the `1,124cr Cuttack Angul project (`)
250.0 230.0 210.0 190.0

95.0

85.0

75.0

02-Dec-11

04-Dec-11

06-Dec-11

08-Dec-11

10-Dec-11

12-Dec-11

16-Nov-11

18-Nov-11

20-Nov-11

22-Nov-11

24-Nov-11

26-Nov-11

28-Nov-11

30-Nov-11

14-Dec-11

16-Dec-11

170.0

01-Dec-11

02-Dec-11

03-Dec-11

04-Dec-11

05-Dec-11

06-Dec-11

07-Dec-11

08-Dec-11

09-Dec-11

10-Dec-11

11-Dec-11

12-Dec-11

13-Dec-11

14-Dec-11

15-Dec-11

29-Nov-11

IRB

ABL

ITNL

Source: Company, Angel Research

Source: Company, Angel Research

Our analysis indicates that ABL is in need of ~`990cr of equity during FY12012-14E, which would increase its dependence on capital markets.

ABL, traditionally a state player, has transformed into a national player by winning four NHAI projects totaling to a TPC of ~`5,156cr. However, this transition has come at a cost, as it entails premium commitments to NHAI (~`220cr per year, albeit covered by toll collections during the construction period) and huge equity contributions from ABLs side. We have analyzed the equity requirement for ABL over FY2012-14E on the basis of its current portfolio. Our analysis indicates that ABL is in need of ~`990cr of equity during the same period (as shown in the table below), which would increase its dependence on capital markets for the same. In recent times, markets have been harsh on companies with loose financial discipline and we, therefore, remain conservative in assigning higher trading multiples to ABL until the time its funding is tied up.

December 16, 2011

30-Nov-11

16-Dec-11

Initiating Coverage | Infrastructure

Equity requirement of ~`9.9bn we expect balance sheet to stretch Management has guided that the PE route would substantially fund the equity requirement. However, we have not factored the same in our estimates, given the gloomy market conditions; instead, we have penciled in the increase in debt levels. As far as funding of equity is concerned, ABL has three sources: 1) internal accruals, 2) dilution of stake at the SPV level and 3) debt raising at Parent level/refinancing of existing operational projects. Internal accruals: Internal sources include cash flow from the C&EPC segment and toll collection. We believe ABLs C&EPC segment would be able to generate cash flow of ~`209cr over FY2012-14E and the BOT segment would be able to garner ~`400cr over the same period. Dilution of stake at the SPV level: As per management, ABL is looking to dilute stake at the SPV level to raise funds worth `700cr-750cr. However, given the current gloomy market conditions, we believe that PE money would be hard to come by and, hence, we are reluctant to factor in the same. Also, the recently won projects are won with high premium commitments towards NHAI; this makes things tougher by raising a question mark over the profitability of these projects. Debt raising at Parent level/refinancing of existing operational projects: We are factoring in the increase of debt at the parent level to fulfill its ~50% of investment commitments (as shown in the table below); and, thereby, we see further deterioration in its balance sheet consolidated net D/E is expected to rise from 1.4x in FY2011 to 3.0x by FY2013E. ABL also has an option to refinance operational BOT projects to meet this shortfall. This route will give cheaper access to funds owing to stability in cash flows. In the past as well, ABL has employed this alternative of re-leveraging to arrange for its funding requirement.

Exhibit 7: Equity requirement and funding over FY2012-14E

ABL Projects Pimpalgaon-Nashik-Gonde Belgaum Dharwad Sambalpur-Baragarh Dhankuni Cuttack Angul Total Funding C&EPC cash flows (FY2012E-14E) BOT cash flows (FY2012E-14E) Funding from Parent/refinancing of operational projects Cash balance (FY2011 Consol.) Total ` cr Projects 44 Pathankot-Amritsar 215 Jaipur-Deoli 299 Talegaon Amravati 293 Tumkur-Chitradurga 140 Ahmedabad-Vadodara 990 ` cr Funding 209 C&EPC cash flows (FY2012E-14E) 400 BOT cash flows (FY2012E-14E) 445 Funding from Parent/refinancing of operational projects 60 Cash balance (FY2011 Consol.) 1,114 Total IRB ` cr 391 499 194 311 753 2,148 ` cr 812 500 250 1,200 2,762

Source: Company, Angel Research, Note: ITNL has an equity requirement of only ~`150cr for its projects (current portfolio)

December 16, 2011

Initiating Coverage | Infrastructure

Peer comparison on various parameters

Despite being a small player, we believe ABL has done a commendable job of ramping up its portfolio (bagged four NHAI projects), which has resulted in good revenue visibility. However, this would lead to increased leverage for the company, as explained before. Therefore, we prefer market leaders like IRB (CMP: `148, TP: `182) over ABL, considering ABLs comparatively smaller size, dependency on capital markets for equity and major projects at nascent stage (given that average weighted age of its portfolio is comparatively lower).

Exhibit 8: Comparison of ABL with IRB and ITNL

ABL ITNL 22 Toll + Annuity yes yes yes 7,026 2,979 4,047 15,048 150 8,900 5.2 1.8 2.8 3.2 6.4 1.0 8.3 IRB 17 Toll yes no no 6,579 3,270 3,309 16,966 2,815 9,635 5.8 3.2 3.3 2.0 11.4 1.6 7.4

ABL, traditionally a state player, has transformed into a national player by winning four NHAI projects totaling to a TPC of ~`5,156cr.

Project comparison No. of projects Project Type Projects in more developed states Foreign presence More diversified Portfolio (project type) Total lane km (stake adjusted) Lane km under operation (stake adjusted) 18 Toll no no no
3,709 1,204 2,505

Average weighted age of portfolio (years) indicates ABLs portfolio is at a nascent stage in comparison to IRB.

Lane km under development (stake adjusted) TPC (stake adjusted) (` cr) Equity Commitment (` cr) For current portfolio Order book OB/Sales (x) (FY2011 EPC rev.) Revenue collection/day (` cr) 2QFY2012 Average Weighted Age of Portfolio (years) Financial comparison Net debt/Equity (FY2013E) (x) PE (FY2013E) P/BV (FY2013E) EV/EBITDA (x) (FY2013E)
project x Weights, Weights= TPC of SPV/ TPC of All SPVs

6,016 1,288 5,150 5.0 1.0 2.4 3.0 9.1 1.0 10.8

We expect deterioration in ABLs balance sheet consolidated net D/E is expected to rise from 1.4x in FY2011 to 3.0x by FY2013E.

Source: Company, Angel Research Note: Average Weighted Age of Portfolio (years) = Age of

December 16, 2011

Initiating Coverage | Infrastructure

Order book position

ABL has an order book of ~`5,150cr (5.0x FY2011 EPC revenue), which provides good revenue visibility. ABL has an order book of ~`5,150cr, including the recently won Cuttack Angul project (5.0x FY2011 EPC revenue), which provides good revenue visibility. The road segment constitutes a major share of the order book (97.1%), while the T&D segment contributes the rest. The stunning yoy growth of 189.3% in the companys order book in FY2011 came on the back of three project wins from NHAI.

Exhibit 9: Current OB break-up (` cr)

Exhibit 10: Growth in OB due to recent project wins

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 FY2010 Order book (` cr) FY2011 1,615 4,672

Source: Company, Angel Research

Source: Company, Angel Research

For FY2012 and FY2013, we are factoring an order inflow of `1,120cr (recently won Cuttack Angul project) and `1,000cr, respectively.

Going ahead, we believe ABL will be more conservative while bidding, owing to: 1) strong order book in hand (`5,150cr 5.0x FY2011 C&EPC revenue) and 2) focus on arranging the equity required for the current portfolio. We have factored in no further order inflow for the remaining part of FY2012 and subdued order inflow for FY2013, which would be mainly aided by the T&D segment. Therefore, for FY2012 and FY2013, we are factoring an order inflow of `1,120cr (recently won Cuttack Angul project) and `1,000cr, respectively.

Exhibit 11: OB/Sales expected to drop due to pick-up in execution and subdued order inflow
5,000 4.6 4,000 3.5 3,000 2,000 1,000 FY2010 FY2011 FY2012E FY2013E 2.9 2.9 3.0 2.0 1.0 4.0 5.0

C&EPC Rev. (` cr)

Source: Company, Angel Research

Order Backlog (` cr)

OB/Sales (x)

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Initiating Coverage | Infrastructure

Financials Consolidated performance

Top-line growth will be driven by under construction captive BOT projects
We expect ABL to post a CAGR of 18.6% during FY2011-13 on the top-line front on the back of strong C&EPC order book (~`5,150cr, 5.0x FY2011 C&EPC revenue) and addition in toll income owing to commissioning of projects. C&EPC revenue is expected to grow yoy by 26.6% and 10.5% to `1,298cr and `1,434cr in FY2012 and FY2013, respectively. ABL has seven projects under the construction/development phase, which will drive its EPC revenue going ahead. On the toll collection front, ABL is expected to post yoy growth of 25.3% and 28.3% for FY2012 and FY2013, respectively. Toll revenue will increase on the back of completion of Jaora-Nayagaon, Pimpalgaon-Nashik-Gonde and Durg projects. It should be noted that ABL has a different accounting policy for toll collection of projects under construction i.e., toll collections during the construction period net of O&M expenses would be credited to capital WIP unlike IRB and ITNL. Consequently, we have incorporated the same while estimating toll revenue.

Exhibit 12: Consolidated revenue to grow at an 18.6% CAGR of over FY11-13E

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 FY2009 FY2010 FY2011 FY2012E FY2013E 518 796 1,302 60.6 53.5 1,831 1,627 25.0 12.5 63.7 70.0 60.0 50.0 40.0 30.0 20.0 10.0 -

Exhibit 13: C&EPC segment will continue to dominate the overall scheme of things
100 90 80 70 60 50 40 30 20 10 FY2009 FY2010 C&EPC revenues (%) FY2011 FY2012E FY2013E BOT revenues (%) 72 79 85 85 83 28 21 15 15 17

Revenue ( ` cr)

yoy growth (%)

Source: Company, Angel Research

Source: Company, Angel Research

Blended EBITDAM to marginally improve due to change in revenue mix

For FY2011, ABLs blended EBITDAM stood at 19.4%, owing to toll disruption in toll collections for two projects (Pune Shirur and Nagar Karmala) and major O&M work done by the company for few projects. Going ahead, we expect ABL to post blended EBITDAM of 21.7% and 23.1% for FY2012 and FY2013, respectively, as we are factoring normalized C&EPC margin at 12.5% and BOT margin at 85.0% for both FY2012 and FY2013. Marginal improvement in FY2013 would come from higher contribution from the high-margin BOT segment.

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Initiating Coverage | Infrastructure

FY2012E EBITDA (` cr) C&EPC EBITDA BOT EBITDA EBITDAM (%) C&EPC EBITDA BOT EBITDA 352.7 162.6 190.1 21.7 12.5 85.0

FY2013E 423.6 179.0 244.6 23.1 12.5 85.0

Exhibit 14: EBITDAM set to improve in FY2013 on the back of increased toll revenue contribution
450 400 350 300 250 200 150 100 50 FY2009 FY2010 FY2011 FY2012E EBITDA (%) FY2013E EBITDA (` cr)
Source: Company, Angel Research

31.6 26.9 21.7 19.4 424 353 164 214 252 23.1

35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

Earnings growth to be under check due to rising interest cost

ABL is expected to register a subdued CAGR of 13.6% on the earnings front for FY2011-13, primarily on the back of higher interest cost in spite of growth in revenue and improvement in EBITDA margin. For FY2012 and FY2013, we are factoring interest cost of `103.8cr and `143.9cr, respectively. We expect ABLs debt to bloat to `3,468cr in FY2013E from `1,283cr in FY2011 (owing to debt draw down for under construction projects).

Exhibit 15: Debt level to increase substantially over FY2011-13E

1,200 1,000 800 6.2 600 400 200 0 FY2009 Interest (` cr) FY2010 FY2011 FY2012E FY2013E Int. as % of sales yoy inc. in Debt (` cr) 5.5 8.0 6.4 12.5 14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

Exhibit 16: Earnings to be driven by growth in revenue and better EBITDAM

140 120 100 80 60 40 20 FY2009 FY2010 FY2011 FY2012E FY2013E 35 80 101 112 130 7.7 6.7 6.9 7.1 10.1 12.0 10.0 8.0 6.0 4.0 2.0 -

Adj. PAT (` cr)

PATM (%)

Source: Company, Angel Research

Source: Company, Angel Research

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Outlook
History has showed that a world-class road network is a basic requirement for any economy hopeful to maintain high economic growth rates. However, Indias road network is barely adequate to maintain its current growth trajectory indicating an urgent attention towards the same and putting it on the priority list. Positively, the political will to acknowledge and address these issues in now visible. Records till date are mixed for road development in India with PMGSY doing reasonably well and NHDP lagging behind on meeting its targets. However, matters have improved gradually with positive developments happening (as mentioned earlier) and with experience gained on both sides government agencies and private sector. Some issues have been addressed on the ground and at the policy level. But still the sector faces quite a lot of issues for e.g., land acquisition, environment clearance and dispute on certain aspects on the Model Concession Agreement. Having said that, the pace of awarding has definitely picked up considerably as compared to the past, though lower than targets. Therefore, there are ample of opportunities for the private sector, especially for road-focused players like IRB, ABL and ITNL. However, we believe ABL is little differently placed than its peers on account of its leverage position. In recent times, ABL has won large orders, which has resulted in huge premium commitments to NHAI (~`220cr) and equity contributions from ABLs side, which we believe would further stretch its leverage (net D/E is expected to rise from 1.4x in FY2011 to 3.0x by FY2013E). Also, the current cash flow generation from BOT projects and the EPC segment would not fully suffice the equity requirements for under development projects. Hence, we believe the only two options for ABL would be to raise equity, which seems extremely tough in current times, or raise debt for equity funding of its subsidiaries, which we have factored in after considering ~50% of requirement been met from internal accruals/refinancing of operational projects. We believe tying up of funds is the biggest catalyst markets would watch out for in case of ABL and any delay in that would negatively impact its stock performance on the bourses.

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Valuation
We have valued ABL on a SOTP basis by assigning 5.0x EV/EBITDA to its standalone business (`87/share) (lower multiple as compared to IRB/ITNL given the scale of operation) and valued its BOT projects on NPV basis (`158/share) (it should be noted we have been conservative than management on revenues estimates (toll receipts) for under construction projects keeping an eye on revenue yield given the current competitive environment) to arrive at a target price of `245, which implies an upside of 29.4% from current levels. We initiate coverage on the stock with a Buy rating and key catalyst being raising equity from capital markets.

Exhibit 17: SOTP valuation break-up

Business Segment Indore -Edalabad Ahmednagar-Aurangabad Wainganga Bridge Dewas Bypass Katni Bypass PuneShirur Nagar -Karmala Bhandara JaoraNayagaon Durg Pimpalgaon-Nashik-Gonde Belgaum Dharwad Sambalpur-Baragarh DhankuniKharagpur Cuttack Angul Others* EPC (Parent) Net debt at standalone level Total Methodology NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV P/BV NPV 5.0x EV/EBITDA ` cr 242.7 51.2 62.5 28.5 28.0 60.7 62.9 150.9 335.0 110.9 68.2 (47.4) 66.1 182.1 20.0 96.2 ABL's stake (%) 87.0 100.0 50.0 100.0 99.9 100.0 100.0 51.0 14.5 51.0 26.0 100.0 100.0 100.0 100.0 100.0 ABL's share 211.2 51.2 31.2 28.5 28.0 60.7 62.9 76.9 48.6 56.5 17.7 (47.4) 66.1 182.1 20.0 96.2 952.8 (406.9) 1,536.5 `/share 33.6 8.2 5.0 4.5 4.5 9.7 10.0 12.2 7.7 9.0 2.8 (7.6) 10.5 29.0 3.2 15.3 151.7 (64.8) 244.6
*

% to Target Price 13.7 3.3 2.0 1.9 1.8 4.0 4.1 5.0 3.2 3.7 1.2 (3.1) 4.3 11.9 1.3 6.3 62.0 (26.5) 100.0

Source: Company, Angel Research, Note: Discount rate 14% and 16% for operational and under construction projects, respectively, Others include Nashirabad ROB, Sherinallah bridge and FOBs; We have valued Cuttack Angul project on P/BV basis due to pending detail

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Exhibit 18: ABL BOT projects details/assumptions

(` cr) Project Operational Projects Indore -Edalabad Ahmednagar-Aurangabad Wainganga Bridge Dewas Bypass Katni Bypass PuneShirur Nagar -Karmala Bhandara Dhule Bypass Nashirabad Sherinala Anawali Kasegaon Under cons./develop. JaoraNayagaon Durg PNG Belgaum Dharwad Sambalpur-Baragarh DhankuniKharagpur Total MPRDC NHAI NHAI NHAI NHAI NHAI 340 368 452 454 408 840 3,611
#

Client Lane Kms

ABL's Stake (%)

TPC SPV

Equity

Debt

Grant/(Prem.)

Con. sign

Int. Rate (%)

Toll Inc (%) 7.0 15.0* 6.0 25.0* 5.0 18.0* 18.0* 6.0 21.0# 16.0 n.a.

Traffic Inc (%) 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

MPRDC PWD MORTH PWD PWD PWD PWD NHAI PWD MORTH PWD PWD

407 168 26 40 35 216 160 377 12 8 7 22

87 100 50 100 100 100 100 51 100 100 100 5

165.0 103.0 41.0 61.0 71.0 161.0 50.0 535.0 6.0 15.0 14.0 7.4

64.7 36.0 14.5 25.0 28.0 55.0 31.5 150.0 0.6 14.5 7.0 3.3

55.6 67.0 26.5 36.0 43.0 106.0 18.5 375.0 5.4 0.5 7.1 4.1

45.0 10.0 -

22-Sep-01 18-Dec-06 16-Nov-98 31-Aug-01 19-Aug-02 7-May-03 19-Feb-99 18-Sep-07 28-Aug-97 16-Nov-98 23-Mar-99 1-Mar-04

11.9 10.0 9.5 13.8 14.0 11.0 11.3 11.0 No debt No debt No debt No debt

15 51 26 100 100 100

835 587 1,691 694 1,142 2,200 8,378

273.0 201.0

562.0 386.0

(15.3)^ (1.0) 6.2%

@

20-Aug-07 23-Jan-08 8-Jul-09 29-Jun-10 29-Jun-10 21-Jun-11

11.0 13.3 10.3 12.3 11.8 11.0

5.0 5.0 5.0 5.0 5.0 5.0

5.0 5.0 5.0 5.0 5.0 5.0

339.0 1,352.0 215.0 332.0 479.0 810.0

(31.0)^ (1.3)^ (126.1)^

450.0 1,750.0 2,240 6,084

Source: Company, Angel Research, Note:* Every three years, increment of 1% per annum

Every five years, ^ 5% increment per annum,

6.19% of revenue payable as premium and

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Concerns
Interest rate risks
ABLs business model is vulnerable to interest rate fluctuations, and any hike in interest rates could increase its interest costs. The inherent nature of the BOT project requires high leverage. Going by the thumb rule, most road BOT projects have a debt-equity blend of 70:30. In recent times, ABL has won large orders, which is expected to result in stretch in its leverage position (net D/E is expected to rise from 1.4x in FY2011 to 3.0x by FY2013E). Hence, the companys business model is vulnerable to interest rate fluctuations, and any hike in interest rates could increase its interest costs. However, we believe that interest rates are at peak and dont expect any further increase from here on.

Traffic growth risks

The thumb rule for traffic growth is a factor of 0.8-0.9x of real GDP growth. Therefore, we have conservatively factored in 5% traffic growth in ABLs BOT projects. Revenue from BOT toll-based projects is directly affected by traffic growth. Companies bid for projects assuming long-term traffic growth patterns, which may be higher/aggressive than actual growth. This aberration in traffic growth estimates could result in lower returns for companies. Moreover, any economic slowdown or competing road development could impact our estimates. The thumb rule for traffic growth is a factor of 0.8-0.9x of real GDP growth. Therefore, we have conservatively factored in 5% traffic growth in ABLs BOT projects.

Commodity risks
If the movement in the prices of commodities (bitumen, steel and cement) is higher than the estimates, it would have a negative impact on the EBITDAM. Prices of commodities like cement, steel and bitumen play an important role in shaping EBITDAM. We have factored in flat EBITDAM for ABL for the C&EPC and BOT segment owing to inclusion of escalation clause while estimating costs and due to the integrated business model of ABL. However, if the movement in prices of these commodities is higher than the estimates, it would have a negative impact on the companys EBITDAM.

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Company background
ABLs business is organized into four divisions: 1) BOT division, 2) Engineering, procurement and construction (EPC) division, 3) RMC and bitumen division and 4) Toll collection contract division. ABL is an integrated road player involved in building and operating roads and bridges in India on a BOT basis. The companys head office is in Nashik, Maharashtra, and its operations currently reach across the states of Maharashtra, Madhya Pradesh, Chhattisgarh and Rajasthan. In addition to BOT projects, the company engineers and designs; procures raw material and equipment; and constructs roads, bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and institutional buildings along with providing maintenance services. ABL is also involved in the manufacturing and selling of ready-mix concrete (RMC) and bitumen and collecting tolls on roads and bridges owned by it and constructed by third parties. Prior to 1997, ABL was engaged solely in the engineering and construction of residential, commercial, industrial and institutional buildings. In 1997, after acquiring EPC skills, ABL turned its attention towards bidding for contracts for roads and bridges on a BOT basis. The company was awarded its first BOT project, the Dhule bypass in Maharashtra, in 1997 and it completed the construction of the road in the same year. In 2000, ABL began manufacturing RMC solely for use by its EPC division, while in 2002 the company began to manufacture RMC to sell to third parties. In 2005, ABL began processing bitumen to a higher grade at its Pune facility for use in road projects. Having developed systems and procedures for collecting tolls on its BOT projects, including developing its own proprietary computerized toll revenue auditing system, ABL bided for and was awarded the first contract to collect tolls on a road owned and constructed by a third party. In FY2009, the company began undertaking EPC work in the power sector and was awarded a contract by Maharashtra State Electricity Distribution Company Limited for the construction and commissioning of sub-transmission lines, distribution lines, power transformers and new sub-stations. In September 2008, ABL entered into agreements for constructing and developing two shopping malls on a BOT basis.

Seasoned player in the road BOT segment

ABL has a rich experience of 15 years in the road segment with 59 road and bridge projects under its name. Rich experience: ABL has a rich experience of 15 years in the road segment with 59 road and bridge projects under its name. ABL was an early mover in the BOT project sector, as it bagged its first BOT project, the Dhule bypass (TPC - `5.8cr) in Maharashtra, in 1997 and completed the construction in the same fiscal year. In terms of lane km, ABL has executed 3,095 lane km (1,155 lane km third party and 1,941 lane km captive), making it one of the most seasoned players in the road segment.

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Exhibit 19: Portfolio across road focused players

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 ABL ITNL IRB 1,204 3,709 2,979 3,270 7,026 6,579

Operational Lane km

Portfolio Lane km

Source: Company, Angel Research, Note: Adjusted for stake

We believe ABLs enviable reputation in the road segment will augur well for the company to further develop its BOT portfolio and to win EPC contracts for road and bridge construction projects.

Changeover from a state to a national level player: ABL primarily started as a state level construction player and slowly moved to become a national player (recently bagged four big NH projects worth `5,150cr). ABLs early-mover status and continued presence in the road BOT sector provides it with a platform to further develop a BOT portfolio and to win EPC contracts for road and bridge construction projects. Further, the company has worked with well-established players such as L&T, IDFC and SREI Infrastructure Finance, which can lead to future opportunities for ABL in the form of EPC contract for road projects from these players.

Exhibit 20: Project capitalization (` cr)

Oper. ABL IRB ITNL 917 3,339 3,563 % to Total 15.2 19.7 23.7 Under Develop 5,099 13,627 11,485 % to Total 84.8 80.3 76.3 Total 6,016 16,966 15,048

Source: Company, Angel Research, Note: Adjusted for stake

NH-6 ABLs forte: ABL has been concentrating on NH-6 as far as road BOT projects are concerned, which is evident from the fact that it is the largest BOT player on NH-6 with ~1,745 lane km of projects and 57% PPP market share on the same. The company has won BOT projects on NH-6 and is present in four out of six states linked to NH-6. We believe ABLs experience and dominance on this stretch equips it with credible traffic data, which aides while bidding for new projects. Further, it makes it easier to mobilise resources from one project to the other, thus leading to cost savings.

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Under construction BOT projects Update

Exhibit 21: ABLs under construction projects
ABL's stake (%) JaoraNayagaon Durg Pimpalgaon-Nashik-Gonde Belgaum Dharwad Sambalpur-Baragarh DhankuniKharagpur Cuttack Angul Total 15 51 26 100 100 100 100 TPC (` cr) 835 587 1,691 694 1,142 2,200 1,120 8,269 EPC (` cr) 460 539 650 630 1,008 2,016 1,000 6,303
#

Toll Revenue* (` cr) 84.3 58.0 171.0 64.2 96.0 217.2 n.a

Revenue yield# (%) 10.1 9.9 10.1 9.3 8.4 n.a

Status 99% completed 99% completed 47% completed 10% completed CA yet to be signed

Toll collection expected to start 4QFY12 4QFY12 Jul-12 Jul-13 4QFY12 n.a.

16% completed Already operational

9.9 FC expected in 4QFY12

Source: Company, Angel Research, Note: *Toll revenues are for first full year of operation,

Revenue yield=Toll Revenue/TPC

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Profit and Loss (Consolidated)

Y/E March (` cr) Net sales % growth Other operating income Total operating income % chg Total expenditure Construction/Contract expenses Cost of material sold Administrative and other exp. Personnel Other EBITDA % chg (% of Net sales) Depreciation & amortization EBIT % chg (% of Net Sales) Interest & other charges Other income Share in profit of associates Recurring PBT % chg Extraordinary expense/(inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) Adj. PAT % chg (% of Net Sales) Basic EPS (`) Fully diluted EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 323 (19.9) 323 (19.9) 199 120 52.5 14.2 12.9 123.3 16.9 38.2 53.2 70.1 26.4 21.7 47.4 17.6 40.3 53.9 40.3 3.8 9.4 36.5 3.4 33.1 33.1 36.5 10.3 7.4 5.3 36.5 518 60.6 518 60.6 354 265 58.2 15.6 15.9 164.0 33.0 31.6 64.5 99.5 41.9 19.2 64.6 15.0 49.9 23.8 49.9 11.6 23.3 38.3 3.5 34.8 34.8 5.2 6.7 7.6 5.5 5.2 796 53.5 796 53.5 581 484 58.5 17.8 21.3 214.3 30.6 26.9 66.1 148.1 48.8 18.6 49.0 18.6 117.7 135.9 117.7 31.9 27.1 85.9 5.5 80.4 80.4 130.8 10.1 17.6 12.8 130.8 1,302 63.7 1,302 63.7 1,050 928 61.3 26.8 33.3 252.2 17.7 19.4 69.0 183.2 23.7 14.1 71.5 33.9 145.6 23.7 (89.2) 234.8 24.5 10.4 210.3 2.4 208.0 100.8 25.5 7.7 16.0 16.0 25.5 1,627 25.0 1,627 25.0 1,274 1,128 71.3 33.5 41.6 352.9 39.9 21.7 115.1 237.8 29.8 14.6 103.8 23.7 157.7 8.3 157.7 45.7 29.0 112.0 1.3 110.7 110.7 9.8 6.8 17.6 17.6 9.8 1,831 12.5 1,831 12.5 1,407 1,242 80.2 37.7 46.8 423.7 20.1 23.1 121.6 302.1 27.0 16.5 143.9 27.3 185.4 17.6 185.4 53.8 29.0 131.7 1.5 130.2 130.2 17.6 7.1 20.7 20.7 17.6

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Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Minority Interest Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Balance of unutilised monies Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 623 191 432 129 72 291 91 33 99 67 83 208 841 749 259 491 373 91 306 67 35 69 135 165 141 1,095 791 330 461 814 149 685 196 182 85 222 440 245 1,669 1,389 368 1,020 673 139 11 815 241 285 60 229 371 445 2,289 1,809 483 1,326 1,149 160 1,172 362 392 75 343 509 663 3,297 2,249 605 1,644 2,047 168 1,485 489 486 87 424 631 855 4,714 46 13 253 311 512 1 16 841 46 13 289 347 723 2 24 1,095 46 12 404 462 1,122 3 81 1,669 63 830 893 1,283 2 111 2,289 63 941 1,003 2,181 2 111 3,297 63 1,071 1,134 3,468 2 111 4,714 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

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Cash Flow (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 40 53 37 5 6 46 (152) (5) 5 (153) (8) 75 1 67 (40) 139 99 FY2009 50 64 (49) 4 11 148 (367) (19) 4 (382) 211 (7) 203 (30) 99 69 FY2010 118 66 38 5 31 111 (478) (58) 47 (489) 399 (6) 393 15 69 85 FY2011 FY2012E FY2013E 235 69 224 34 24 21 (457) 9 34 (414) 230 161 (23) 368 (24) 85 60 156 115 192 24 46 10 (896) (21) 24 (893) 898 898 15 60 75 184 122 180 27 54 44 (1,339) (8) 27 (1,319) 1,287 1,287 12 75 87

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Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Work. cap. cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 1.3 3.3 1.5 1.9 4.0 1.5 2.2 4.8 3.0 1.4 4.8 2.6 2.1 6.0 2.3 3.0 8.0 2.1 0.6 84 32 134 100 0.8 55 24 128 63 1.0 60 50 190 53 1.2 61 66 141 76 1.0 68 76 126 109 0.9 85 88 148 135 8.9 10.4 11.1 10.3 11.3 11.6 10.7 11.3 21.2 9.3 9.6 14.9 8.5 8.7 11.7 7.5 7.7 12.2 21.7 0.9 0.5 9.5 9.0 1.2 10.0 19.2 0.8 0.6 8.6 8.0 1.6 9.6 18.6 0.7 0.6 8.3 3.9 2.1 17.5 14.1 0.9 0.7 8.6 5.3 1.7 14.1 14.6 0.7 0.6 6.2 4.3 1.8 9.6 16.5 0.7 0.5 5.5 3.6 2.6 10.2 7.4 5.3 13.7 49.6 7.6 5.5 15.8 55.3 17.6 12.8 23.3 73.6 16.0 16.0 27.0 142.1 17.6 17.6 35.9 159.7 20.7 20.7 40.1 180.4 35.9 13.8 3.8 5.0 13.0 1.9 34.1 12.0 3.4 3.6 11.2 1.7 14.8 8.1 2.6 2.8 10.4 1.3 11.8 7.0 1.3 1.9 9.6 1.1 10.7 5.3 1.2 2.0 9.3 1.0 9.1 4.7 1.0 2.5 10.8 1.0 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

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Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

ABL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 39357800 Research Team
Fundamental: Sarabjit Kour Nangra Vaibhav Agrawal Shailesh Kanani Srishti Anand Bhavesh Chauhan Sharan Lillaney V Srinivasan Yaresh Kothari Shrinivas Bhutda Sreekanth P.V.S Hemang Thaker Nitin Arora Ankita Somani Varun Varma Sourabh Taparia Technicals: Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Derivatives: Siddarth Bhamre Institutional Sales Team: Mayuresh Joshi Hiten Sampat Meenakshi Chavan Gaurang Tisani Akshay Shah Production Team: Simran Kaur Dilip Patel Research Editor Production simran.kaur@angelbroking.com dilipm.patel@angelbroking.com VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Dealer mayuresh.joshi@angelbroking.com Hiten.Sampat@angelbroking.com meenakshis.chavan@angelbroking.com gaurangp.tisani@angelbroking.com akshayr.shah@angelbroking.com Head - Derivatives siddarth.bhamre@angelbroking.com Sr. Technical Analyst Technical Analyst Technical Analyst shardul.kulkarni@angelbroking.com sameet.chavan@angelbroking.com sacchitanand.uttekar@angelbroking.com VP-Research, Pharmaceutical VP-Research, Banking Infrastructure IT, Telecom Metals, Mining Mid-cap Research Associate (Cement, Power) Research Associate (Automobile) Research Associate (Banking) Research Associate (FMCG, Media) Research Associate (Capital Goods) Research Associate (Infra, Real Estate) Research Associate (IT, Telecom) Research Associate (Banking) Research Associate (Cement, Power) sarabjit@angelbroking.com vaibhav.agrawal@angelbroking.com shailesh.kanani@angelbroking.com srishti.anand@angelbroking.com bhaveshu.chauhan@angelbroking.com sharanb.lillaney@angelbroking.com v.srinivasan@angelbroking.com yareshb.kothari@angelbroking.com shrinivas.bhutda@angelbroking.com sreekanth.s@angelbroking.com hemang.thaker@angelbroking.com nitin.arora@angelbroking.com ankita.somani@angelbroking.com varun.varma@angelbroking.com sourabh.taparia@angelbroking.com

CSO & Registered Office: G-1, Ackruti Trade Centre, Rd. No. 7, MIDC, Andheri (E), Mumbai - 400 093.Tel.: (022) 3083 7700. Angel Broking Ltd: BSE Sebi Regn No: INB010996539 / PMS Regd Code: PM/INP000001546 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / NSE Sebi Regn Nos: Cash: INB231279838 / NSE F&O: INF231279838 / Currency: INE231279838 / MCX Currency Sebi Regn No: INE261279838 / Member ID: 10500 / Angel Commodities Broking Pvt. Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

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